The beginning cash balance is $3,000,estimated cash receipts are $105,000,and estimated cash disbursements are $111,000.How much cash must be borrowed to have a desired ending balance of $5,000?

Question

Quizplus · Accepted Answer

The total cash available is $3,000 (beginning balance) + $105,000 (receipts) = $108,000. The total cash needed is $111,000 (disbursements) + $5,000 (desired ending balance) = $116,000. Therefore, $116,000 - $108,000 = $8,000 must be borrowed.

The Beginning Cash Balance Is $3,000,estimated Cash Receipts Are $105,000,and